"How is money created? It masquerades as such a simple question, but it’s one that befuddles MPs, even economists and so many of us who happily use the stuff every day.", reads the article in The Daily Mail, 29th July 2016.
Archive for July, 2016
Geoff Tily has some interesting and balanced analysis on the academic debate around money reform, in particular the debate between Giuseppe Fontana and Malcolm Sawyer, and Positive Money, which is currently playing out in the Cambridge Journal of Economics.
Last week the Bank of England released a key paper that analyses the 'macroeconomics of central bank issued digital currencies'. The paper essentially asks what would happen if people could hold money electronically at the central bank, instead of having to use bank deposits (created by commercial banks). We wrote about it briefly last week but we're still working through the fine details of the 69-page mathematical model to figure out the implications for our work. In the meantime, the Bank of England's staff blog has just released a much more accessible discussion of the issues:
The Cambridge Journal of Economics (probably the leading journal of Post-Keynesian economics) has published an entire special issue on "Cranks and brave heretics: Rethinking money and banking after the Great Financial Crisis", inviting a range of academics to comment on proposals to stop banks creating money (amongst other ideas for monetary reform).
With Theresa May suddenly catapulted into the UK Prime Minister's seat after Brexit and the dramatic political events that followed, exciting new opportunities have opened up for our campaign for a fair, democratic, and sustainable money system.